What is Insurance

The Perfect Financial Service

Insurance – Common Terminology

Uncertainty is the only thing that is certain in this world. Insurance is a method of protection from contingencies and financial losses arising due to uncertain risks.

Key Terms

Insurance Regulatory & Development Authority of India (IRDAI)

The Insurance Regulatory and Development Authority of India is a regulatory body under the jurisdiction of Ministry of Finance, Government of India and is tasked with regulating and licensing the insurance and re-insurance industries in India.

Insurance Company (Insurer)

A company that is authorised by IRDAI (Insurance Development Authority of India) for selling insurance products and services.

Insurance Broker

A specialist in risk management and insurance is an insurance broker. Brokers advise clients in their clients’ best interests and act on their behalf. To help you decide what to insure and how to manage those risks in other ways, a broker will assist you in identifying your individual and/or business risks. If you need to file a claim, you can get technical advice from an insurance broker. Brokers are aware of the terms and conditions, coverages and exclusions and costs of a wide range of competing insurance policies; so they can help you find the most appropriate cover for your own circumstances. Brokers can assist with the cover’s arrangement and placement with the chosen insurer.

Policyholder

The individual or an entity who owns the insurance policy.

Insured

The individual or an entity who’s risk is covered under the policy.

Policy

A contract in which an individual or entity pays an insurance company in exchange of financial protection or reimbursement of losses resulting from a covered event.